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IPE Brent opens up, brokers eye UN talks on Iraq
London, Nov 7: IPE Brent crude futures got of to a choppy start on Friday with a push through $23 a barrel quickly sold into, the retracement finding support at $22.94 for a bounce. Brokers said opening trade was fairly hectic as the quick push through $23 drew profit taking. They said there was a nervous air to the market prompted by a meeting of key United Nations Security Council ambassadors tentatively scheduled for Friday that could ease sanctions if Baghdad allows arms inspections to resume. By 1100 GMT, December Brent was 17 cents up at 23.02 a barrel with nearly 1,900 lots traded on the contract. November gas oil was up $1 at $188 a tonne.The December Brent/NYMEX crude spread continued to widen putting on 15 cents to around 35 cents a barrel in early trade. However, Brent's strength saw the December Brent to gas oil crack pegged back to around $2.10 a barrel. The meeting of the UN ambassadors was pencilled in for 2000 GMT, but was to be confirmed on Friday. The general outline of a proposedresolution would lift any ceiling on how much oil Iraq could sell, now at $5.23 billion every six months. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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